Pro-XRP Lawyer Says SEC Could Have Been in a Strong Position in Ripple Lawsuit If it Did This

Attorney Morgan said the SEC could have been in a strong position in the Ripple lawsuit if it limited its complaint to programmatic XRP sales.

Australian-based lawyer Bill Morgan highlighted what could have been a major strength for the SEC in its case against Ripple. According to Morgan, the SEC could have been in a stronger position to win the Ripple lawsuit if it had limited its complaint to programmatic XRP sales. 

However, the SEC made broad complaints by alleging that both Ripple’s programmatic XRP sales and sales to On-Demand Liquidity (ODL) clients are securities. 

“The SEC would be in a stronger position in this litigation if it had limited the complaint to programmatic [XRP] sales,” said attorney Morgan. “Instead of alleging a single 8-year undifferentiated offering that includes very different types of sales such as sales to ODL customers.” 

The SEC would be in a stronger position in this litigation if it had limited the complaint to programmatic sales instead of alleging a single 8 year undifferentiated offering that includes very different types of sales such as sales to ODL customers/14

— bill morgan (@Belisarius2020) June 29, 2023

Morgan Highlights Difference Between the XRP Sales 

Attorney Morgan went further to highlight the difference between Ripple’s programmatic XRP sales and XRP sales to ODL customers within the context of the lawsuit. 

According to Morgan, Ripple’s XRP sales to ODL customers cannot be classified as investment contracts. He explained that ODL customers do not have investment intent or expect profit from their XRP holdings. The primary goal why ODL clients purchase XRP is to use the crypto asset as a bridge between two fiats during cross-border settlements. 

Notably, attorney Morgan said the intent of Ripple’s programmatic sales differs from that of ODL sales. He clarified that Ripple was unaware of the buyers for its programmatic sales because market makers facilitated the transactions. 

“Ripple did not know who purchased these XRP and did not restrict market makers from selling to buyers who only use XRP as money,” Morgan added. 

The programmatic sales of XRP were through market makers, at least partly on exchanges, through blind bid/ask transactions. Ripple did not know who purchased these XRP and did not restrict market makers from selling to buyers who only use XRP as money. /12

— bill morgan (@Belisarius2020) June 29, 2023

Morgan said Ripple paused programmatic XRP sales in Q4 2019, a few months after the SEC warned the blockchain company. Furthermore, Morgan speculated that Ripple pausing its programmatic sales suggests that the company was concerned the SEC could view the transactions as securities. Consequently, Ripple stuck to selling XRP to ODL customers, he added. 

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• Source: https://thecryptobasic.com/2023/06/30/pro-xrp-lawyer-says-sec-could-have-been-in-a-strong-position-in-ripple-lawsuit-if-it-did-this/?utm_source=rss&utm_medium=rss&utm_campaign=pro-xrp-lawyer-says-sec-could-have-been-in-a-strong-position-in-ripple-lawsuit-if-it-did-this